Shell PLC on Thursday said it will maintain the pace of quarterly share buybacks despite reporting a decline in earnings on softer refining margins.
The London-based oil major said total revenue in the third-quarter of 2024 fell 7.1% on-year to $72.46 billion from $78.01 billion, sending its pretax profit 36% lower to $7.27 billion from $11.29 billion.
Adjusted earnings slipped 3.1% to $6.03 billion from $6.22 billion. Nonetheless, this was above market consensus for $5.4 billion.
Adjusted earnings before interest, tax, depreciation and amortisation was down 2.0% to $16.01 billion from $16.34 billion.
Chief Executive Officer, Wael Sawan said it was ‘another set of strong results’.
‘We continue to deliver more value with less emissions, whilst enhancing the resilience of our balance sheet,’ he asserted.
Shell said it grappled with ‘lower crude prices and weaker refining margins’. It noted a ‘strong operational performance in Integrated Gas, Upstream and Marketing’, however.
Shell announced a $3.5 billion share buyback, which is expected to be completed by the time of its fourth-quarter results announcement. This is scheduled for January 30.
The buyback amount is the same as announced at the end of the second quarter, amid market concerns that lower oil prices could put shareholder distributions under pressure.
It marks the 12th consecutive quarter in which Shell has announced $3 billion or more in buybacks.
Shell also declared a $0.3440 per share cash dividend for the third quarter, in line with the second quarter’s, and up 3.9% on-year from $0.3310.
Shell said cash capital expenditure for 2024 is expected to be below the lower end of the $22 to $25 billion range.
Cash flow from operations of $14.7 billion for the quarter included a working capital inflow of $2.7 billion, mainly due to lower prices, Shell said. Net debt was reduced by $3.1 billion over the quarter to $35.2 billion.
Shares in Shell were 1.0% higher at 2,516.00 pence each in London on Thursday morning.
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